An Insurance Agent Is A Person Who Works On Behalf Of An Insurance Company and Sells The Company’s Policies. Generally They Are Of Two Types Namely Independent Agents And Captive Agents Of The Company. Independent Agents Are Self-employed And Sell Products Of Various Insurance Companies. They Get Income In The Form of Commission From The Respective Insurance Companies. Apart From This There Are Captive Agents Who Work For Only One Company. They Represent The Same Company And Receive Income From It In The Form Of Salary Or Commission.
Agency Like This:
There Are Certain Conditions For Those Who Want To Get Employed As An Insurance Agent. Should Be 18 Years Of Age. As Far As Education is Concerned, Those In Rural Areas Should Have Passed At Least 10th Standard And Those In Urban Areas Should Have Passed 12th Standard. Those Who Have These Qualifications Can Apply To Any Insurance Company And Become An Advisor. From College Students And Graduates To Housewives And Retirees Can Become Insurance Agents. In Case Of Taking License As An Agent For The First Time, He Has To Undergo Training For A Prescribed Period Of Time In A Training Institute Recognized By The Insurance Sector Regulator Irdai. After That They Have To Pass The Pre-licensing Test For The Agency License. A Licensed Life Insurance Agency Can Only Sell The Relevant Policies. Also, if A General Insurance Policy License is Taken, Only General Insurance Policies Can Be Sold. If A Composite License is Taken, It Will Be Possible To Sell Policies Of Both Life And General Insurance Companies. However, Only A Life Insurance Company, A General Insurance Company, A Stand Alone Health Insurance Company Can Act As An Insurance Agent.
Also Read – What is insurance? – Life insurance: General Insurance
According to IRDAI Rules, Insurance Companies Can Pay Up To 20 Percent Of The First Year’s Commissions To A Distributor If The Share Of Revenue From Non-insurance Intermediation Business Is Less Than 50 Percent Of The Distributor’s Total Revenue In A Year. The main Objective Of This Provision Is To Encourage Agents Who Are Solely Dependent on Insurance Business. However, This Does Not Apply To Institutional Distributors Like Banks.
Also Read – Life Insurance: A Detailed Overview
Many people work as insurance agents to gain self-employment. The demand for this is increasing as they have the flexibility to do their own work while working as an insurance agent. Life Insurance Corporation of India (LIC) is the largest insurance company in India. A few lakh agents are working in LIC.
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